RBI imposed Monetary Penalty on 6 Cooperative Banks for non-compliance with RBI directions

The Reserve Bank of India (RBI) has imposed with Monetary Penalty of Rs.8 Lakhs on 6 Cooperative Banks for non-compliance with RBI directions.

RBI imposed a monetary penalty of Rs.1.00 lakh on Contai Co-operative Bank Ltd. (the bank) for non-compliance with the directions issued by RBI on ‘Know Your Customer (KYC) Directions, 2016’.

A monetary penalty of Rs. 1.00 lakh on Sarvodaya Co-operative Bank Limited, Mumbai (the bank) for non-compliance with the specific directions issued by RBI under Supervisory Action Framework (SAF).

Imposition of a monetary penalty of Rs.3.00 lakh on The Manmandir Co-operative Bank Limited, Vita (the bank) for non-compliance with the directions issued by RBI on ‘Know Your Customer (KYC) Directions, 2016’ and ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks’.

Sanmitra Sahakari Bank Ltd., Pune (the bank) has been levied with monetary penalty of Rs.1.00 lakh for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts – Primary (Urban) Co-operative Banks’.

For non-compliance with the directions issued by RBI on ‘Loans and advances to directors, relatives and firms/concerns in which they are interested’ read with ‘Loans and Advances to directors etc. – directors as surety/guarantors – Clarification’, and ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’, a monetary penalty of Rs.2.00 lakh imposed on The Lakhvad Nagarik Sahakari Bank Ltd. situated in Mehsana, Gujarat.

This penalty was imposed by the RBI in accordance with the provisions of sections 47 A (1) (c), 46 (4) (i), and 56 of the Banking Regulation Act of 1949.

This action is based on regulatory compliance problems and is not intended to call into question the legitimacy of any transaction or agreement entered into by the bank with its clients.